Better Broadband Better Lives

2,200 Broadband Stimulus Applications Seek Seven Times More Funds Than Available

WASHINGTON, August 27, 2009 – Nearly 2,200 applications were submitted for federal funding from the federal government’s broadband stimulus program, seeking $27.6 billion in funding, out of $4.3 billion that is available, said the National Telecommunications and Information Administration and Rural Utilities Service.

“Applicants requested nearly seven times the amount of funding available, which demonstrates the substantial interest in expanding broadband across the nation," said Lawrence Strickling, Assistant Secretary for Communications and Information and Administrator of NTIA, which is part of the Commerce Department.

"We will move quickly but carefully to fund the best projects to bring broadband and jobs to more Americans,” he said.

"The overwhelming response we received underscores the extensive interest in expanding broadband across the country,” said Jonathan Adelstein, Administrator of RUS, which is part of the Agriculture Department.

“Rural communities clearly recognize that broadband can expand their economic opportunities and create jobs," Adelstein said. “The Obama Administration’s goal is to target funds to serve areas of greatest need. The big demand for loans as well as grants demonstrates that we can leverage private investment with USDA's $2.5 billion to deliver the greatest bang for the taxpayers' buck."

Of the $4.3 billion available in this round, RUS will make $2.3 billion available (in both grants and loans), and the NTIA will make $2 billion available.

Of the applications, more than 940 were filed with NTIA, more than 400 were filed with RUS, and more than 830 applications were filed with both NTIA and the RUS.

Of the NTIA applications, 260 were filed for infrastructure grants that are part of the NTIA’s Broadband Technology Opportunities Program. These grants sought $5.4 billion to provide broadband in unserved and underserved areas. A total of $1.6 billion is available from this pool.

The other NTIA-only applications were for sustainable broadband adoption, or for public computing centers. More than 320 applications requested nearly $2.5 billion for sustainable broadband projects; the amount allocated to this round is $150 million.

More than 360 applications were filed in the public computing center category. These applications requested more than $1.9 billion; the amount allocated to public computer centers in this round is $50 million.

Of the RUS infrastructure grants, more than 400 applications requested $5 billion in grants and loans for broadband infrastructure projects in rural areas. The total available in this round for RUS-funded projects is $2 billion, although the RUS has a $325 million “reserve” fund upon which it can draw.

Finally, of the more than 830 application filed jointly with NTIA and RUS, they requested nearly $12.8 billion in infrastructure funding. These applications would draw upon either the $2.3 billion from RUS, or the $1.6 billion in infrastructure funding available through the NTIA – or through the NTIA’s $200 million “reserve” fund.

The agencies said that, “In the coming weeks, NTIA and RUS will post online a searchable database containing summaries of all applications received. The dollar figures cited today represent applicants’ self-reported totals from proposals submitted before the August 20, 2009, deadline at 5 p.m. ET. These results are preliminary estimates, however, and may change as the applications are reviewed for errors, omissions, and duplications.”

Drew Clark is the Editor and Publisher of BroadbandBreakfast.com and President of the Rural Telecommunications Congress. He is an attorney who works with cities, communities and companies to promote the benefits of internet connectivity. The articles and posts on BroadbandBreakfast.com and affiliated social media, including the BroadbandCensus Twitter feed are not legal advice or legal services, do not constitute the creation of an attorney-client privilege, and represent the views of their respective authors.

Big Telecom and Cable made it clear they were turning up their noses at GRANT money and the propaganda machine was, for the last few weeks, cranking out stories about how unattractive the terms were, considering the “strings” that were put on that dough, ie Net Neutrality.

Seems not everyone had that opinion.

Almost makes you wonder if the market was REALLY opened up via robust and litigation proof local loop unbundling legislation, what the result would be. Though I think we all know that at the first sniff of any such legislation, the lobbyists will be out in full force and a lot of campaign chests will receive windfalls.

[…] NTIA and RUS announced that the two broadband stimulus programs have received nearly 2,200 applications. Over 1,500 of these applications are for broadband infrascture grants and loans. For more information, visit NTIA’s website. A related news story posted by Drew Clark on his BroadbandCensus.com website can be found here. […]